Novell (NOVL) dirt cheap, good buy? Message Board

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Technology Stocks : Novell (NOVL) dirt cheap, good buy?

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To: Frederick Smart who wrote (16337)	8/26/1997 11:57:00 AM
From: George Papadopoulos	of 42771

That (1) was NOT cool... From DBC this morning. No denial yet... ------------------- Novell heats up on IBM buyout talk Novell shares, surging in their third-consecutive session, jumped more than 13 percent in heavy Tuesday morning amid speculation of a buyout bid mounted by IBM Corp. . Neither company commented on the talk. Brian Eisenbarth, analyst at Collins & Co. in San Francisco, said he wasn't sure how much credibility to give the rumor, which he also heard last year. "But IBM has made acquisitions of struggling companies in the past -- Lotus comes to mind," he said, referring to Big Blue's $3.5 billion stock purchase in June, 1995. "IBM has a large installed base and could easily sell (Novell) products to their customers," Eisenbarth added. The stock's advance comes after the troubled company reported that a 75 percent drop in fiscal third-quarter sales left earnings below Wall Street expectations. Novell posted a loss of 25 cents a share, excluding a charge of 10 cents. Analysts expected a loss of 15 cents, according to First Call. Sales fell to $90 million from $365 million a year ago because the company didn't release any new products into the indirect sales channel. Novell has been struggling as businesses increasingly turn to Microsoft's Windows NT for their network software. "I know IBM would like to carve out market share against Microsoft in the NT area," Eisenbarth said. The stock added 1 5/16 to 10 5/16 on volume of nearly 15 million shares. IBM shares fell 1 3/8 to 103 5/8.

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